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How much must you deposit today into the following accounts in order to have a $120,000\$ 120,000 college fund in 1515 years? Suppose that no additional deposits are made. An APR of 5.5%5.5 \%, compounded annually

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Answered 2 years ago
Answered 2 years ago
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The goal is to determine the starting principal if the accumulated balance is $120000\$120000 for 1515 years with an annual percentage rate of 5.5%5.5\% compounded annually.

To determine the starting principal, apply this formula:

P=A(1+APRn)nYP=\dfrac{A}{(1+\frac{APR}{n})^{nY}}

where PP is the starting principal, AA is the accumulated balance, APRAPR is the annual percentage rate (as a decimal), nn is the number of compounding periods per year, and YY is the number of years.

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